Power Integrations meets guidance

MANHASSET, N.Y.  Power Integrations Inc. reported a net income of $5.0 million on revenue of $35.9 million in its second quarter, up from $4.2 million on sales of $29.8 million in the year-ago second quarter though down slightly from earnings of $5.1 million on sales of $34.2 million the previous quarter. Results fell within the expected guidance for the San Jose supplier of high-voltage integrated circuits.

Gross margin for the second quarter was 46.0 percent, as expected, down from 48.9 percent in the prior quarter. The decline was due primarily to lower overhead absorption as the company reduced its inventories earlier in the year and, to a lesser extent, to the strengthening of the Japanese yen over the last year. Gross margin is expected to improve to 48 percent in the third quarter.

"Our results in the second quarter were at the high end of our expectations," said Balu Balakrishnan, president and chief executive, in a statement. "Market share gains across a wide array of end markets allowed us to deliver strong year-over-year growth in revenues despite relatively modest growth in the communications market."

For the third quarter, the company expects revenue to increase 6 and 12 percent sequentially, with earnings per share ranging from 18 to 21 cents.